Home, Luxury, Beauty: Prime Targets of Fraud in End-of-Year Sales

In Mexico, online fraud has experienced a significant increase, especially during end-of-year sales seasons, with supermarket, home, luxury, and beauty products being the most targeted, says fraud prevention platform Signifyd.

"The fraudster is looking for high-value products that offer a profit margin for resale," says Christian Leon, Vice President for Latin America, Signifyd. "This preference for luxury and beauty products is due to the fact that they have a high demand and profit margin on resale, which makes them ideal targets for fraudsters."

The growth in Mexican e-commerce has been accompanied by an increase in opportunities for cybercriminals, especially during sales periods, leading to a 47% increase in cases of e-commerce fraud in 2024 compared to the previous year.

According to Statista, over 70% of the Mexican population made digital purchases in 2023, a considerable increase from 60% in 2020. Projections indicate that by 2029, the percentage of e-commerce penetration in Mexico will reach 90%.

Categories that have shown the largest increase in fraud attempts include household goods (129%), luxury (29%), and beauty (10%). This reflects a trend in which fraudsters are focusing on products that are not only expensive, but also easily resold in parallel markets, such as high-priced cosmetics and household appliances.

Despite the overall decrease in the average fraud ticket during the Buen Fin 2024 sales, sectors such as luxury consumer goods experienced a significant increase in the value of fraudulent orders. For example, the average fraud ticket in the luxury sector increased by 30%, supporting fraudsters' interest in high-value products.

Anti-Fraud Tools and Future Projections

To counter these attacks, Signifyd recommends implementing advanced tools to identify fraud patterns in real time. With online shopping on the rise, retailers have to balance fraud detection with providing a smooth shopping experience, as speed and accuracy in identifying fraud are crucial to avoid losing legitimate sales.

According to the Mexican Online Sales Association (AMVO), eight out of 10 internet users plan to make purchases during the end-of-year season, which represents both an opportunity and a significant risk for retailers.

Kaspersky recommends adopting security practices such as using complex and non-repeated passwords, as well as avoiding clicking on suspicious links in emails or text messages.